Principles of Risk Management and Insurance, 13th Edition

Group Insurance Marketing

In addition to the preceding, many insurers use group marketing methods to sell individual insurance policies to members of a group. These groups include employers, labor unions, trade associations, and other groups. In particular, substantial amounts of new individual life insurance, annuities, long-term care insurance, and other financial products are sold to employees in employer–employee groups. Employees pay for the insurance by payroll deduction. Workers no longer employed can keep their insurance in force by paying premiums directly to the insurer.

Life insurers typically sell and service group life insurance products through group representatives who are employees who receive a salary and incentive payments based ...